UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]  Quarterly  report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934 For the quarterly period ended     September 30, 2003
                                                ------------------

[ ]  Transition  report under Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 For the transition period from _____ to _____


                        Commission file number: 000-26095


                              ENVIROKARE TECH, INC.
        ---------------------------------------------------------------
        Exact name of small business issuer as specified in its charter)


            Nevada                                             88-0412549
-------------------------------                            ------------------
State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                            Identification No.)



             5850 T.G. Lee Blvd., Suite 535, Orlando, Florida 32822
             ------------------------------------------------------
                    (Address of principal executive offices)


                                 (407) 856-8882
                           --------------------------
                           (Issuer's telephone number)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS


Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court. Yes [ ] No [ ] NOT APPLICABLE


                      APPLICABLE ONLY TO CORPORATE ISSUERS


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest  practicable date: The total number of shares of Common
Stock,  par value $.001 per share,  outstanding  as of November  14,  2003,  was
32,451,144.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X]

<PAGE>


                                TABLE OF CONTENTS


Part I - FINANCIAL INFORMATION

         Item 1.  Financial Statements:

                   Consolidated Balance Sheets.................................4

                   Consolidated Statements of Operations.......................5

                   Consolidated Statements of Cash Flows.......................6

                   Condensed Notes to the Consolidated Financial Statements....7


         Item 2.  Management's Discussion and Analysis or Plan of Operations..13

         Item 3.  Control and Procedures......................................16


Part II - OTHER INFORMATION

         Item 1.    Legal Proceedings.........................................17

         Item 2.    Changes in Securities.....................................17

         Item 3.    Defaults Upon Senior Securities...........................17

         Item 4.    Submission of Matters to a Vote of Security Holders.......17

         Item 5     Other Information.........................................17

         Item 6.    Exhibits and Reports on Form 8-K..........................18


SIGNATURES....................................................................19




<PAGE>
             CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS


This document contains forward-looking  statements within the meaning of Section
27A of the Securities  Act and Section 21E of the Exchange Act. All  statements,
other than  statements  of  historical  facts,  included in or  incorporated  by
reference into this Form 10-QSB which address activities, events or developments
which the  Company  expects,  believes or  anticipates  will or may occur in the
future  are  forward-looking   statements.   The  words  "believes,"  "intends,"
"expects,"  "anticipates,"   "projects,"  "estimates,"  "predicts"  and  similar
expressions  are also  intended to identify  forward-looking  statements.  These
forward-looking   statements  include,  among  others,   statements  concerning:
expectations,   anticipations,  beliefs,  estimations,  projections,  and  other
similar matters that are not historical facts,  including such matters as future
capital  and  development  expenditures  and  expansion  and growth of  business
operations.

These  statements  are based on certain  assumptions  and  analysis  made by the
management of Envirokare  Tech Inc.,  ("ENVIROKARE")  in light of its experience
and its perception of historical trends,  current conditions and expected future
developments  as well as  other  factors  it  believes  are  appropriate  in the
circumstances.

Envirokare cautions the reader that these forward-looking statements are subject
to risks and  uncertainties,  including  those  associated  with:  the financial
environment,  general economic,  market and business conditions,  the regulatory
environment,  business  opportunities  that may be  presented  to and pursued by
Envirokare,  changes in laws or regulations,  availability to obtain  additional
financing on favorable conditions, trend projections, and other factors, many of
which are beyond the Company's control that could cause actual events or results
to differ  materially from those  expressed or implied by the  statements.  Such
risks and uncertainties include those risks and uncertainties  identified in the
Description of the Business and Management's Discussion and Analysis sections of
this  document and risk  factors  discussed  from time to time in the  Company's
filings with the Securities and Exchange Commission.

Significant  factors that could  prevent  Envirokare  from  achieving its stated
goals  include:  the  inability of  Envirokare  to obtain  financing for capital
expenditures and acquisitions,  declines or failure to develop in the market for
the Company's  products,  development of superior  products by competition,  and
adverse changes in the regulatory environment affecting the Company.

The cautionary  statements  contained or referred to in this document  should be
considered in connection  with any  subsequent  written or oral  forward-looking
statements  that may be issued by Envirokare  or persons  acting on its or their
behalf.

Envirokare  undertakes no  obligation  to release  publicly any revisions to any
forward-looking  statements to reflect  events or  circumstances  after the date
hereof or to reflect the occurrence of unanticipated events.





                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION



Item 1.           Financial Statements












                              ENVIROKARE TECH INC.
                              Financial Statements

                               September 30, 2003




















                                        3
<PAGE>
<TABLE>
<CAPTION>

                                              ENVIROKARE TECH, INC.
                                         (A Development Stage Company)
                                          CONSOLIDATED BALANCE SHEETS

                                                                             September 30,
                                                                                 2003            December 31,
                                                                              (unaudited)            2002
                                                                         -----------------     -----------------
<S>                                                                     <C>                    <C>
 ASSETS
     CURRENT ASSETS
          Cash                                                           $         16,008       $         9,506
          Deposits and retainers                                                   18,816                53,942
          Prepaid expenses                                                          6,537                     -
          Inventory                                                                42,200                     -
                                                                         -----------------     -----------------
              TOTAL CURRENT ASSETS                                                 83,561                63,448
                                                                         -----------------     -----------------

     PROPERTY AND EQUIPMENT
          Furniture and fixtures                                                    7,502                 8,144
          Office equipment                                                          9,749                 9,009
          Molds                                                                   170,912                59,000
              Less accumulated depreciation                                        (5,922)               (6,884)
                                                                         -----------------     -----------------
              TOTAL PROPERTY AND EQUIPMENT                                        182,241                69,269
                                                                         -----------------     -----------------

     OTHER ASSETS
          Deposits and retainers                                                        -                 8,412
          License agreement                                                       525,000               525,000
          Patent acquisition costs and technology rights                        1,958,939             1,958,939
                                                                         -----------------     -----------------
              TOTAL OTHER ASSETS                                                2,483,939             2,492,351
                                                                         -----------------     -----------------

TOTAL ASSETS                                                            $       2,749,741       $     2,625,068
                                                                         =================     =================

LIABILITIES & STOCKHOLDERS' EQUITY

     CURRENT LIABILITIES
          Accounts payable                                              $         337,702       $       114,145
          Customer deposit                                                         61,215                61,215
          Notes payable                                                           251,965                61,965
          Accrued interest                                                         37,729                25,337
                                                                          -----------------     -----------------
              TOTAL CURRENT LIABILITIES                                           688,611               262,662
                                                                          -----------------     -----------------

      LONG TERM LIABILITIES
          Notes payable to stockholders                                         1,125,000             1,025,000
          Accrued interest to stockholders                                        300,480               183,802
                                                                         -----------------     -----------------
              TOTAL LONG TERM LIABILITIES                                       1,425,480             1,208,802
                                                                          -----------------     -----------------


     COMMITMENTS AND CONTINGENCIES                                                      -                     -
                                                                         -----------------     -----------------

          Convertible preferred stock, 10,000,000 shares authorized,
              $.001 par value; 0 shares issued and outstanding                          -                     -
          Common stock, 200,000,000 shares authorized,
              $.001 par value; 31,776,144 and 30,056,144 shares
              issued and outstanding, respectively                                 31,776                30,056
          Additional paid-in capital                                            4,640,246             4,273,090
          Stock options and warrants                                              597,940               646,815
          Accumulated deficit during development stage                         (4,634,312)           (3,796,357)
                                                                         -----------------     -----------------
              TOTAL STOCKHOLDERS' EQUITY                                          635,650             1,153,604
                                                                         -----------------     -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                              $       2,749,741       $     2,625,068
                                                                         =================     =================





        The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                       4
</table>
<PAGE>
<TABLE>
<CAPTION>



                                                     ENVIROKARE TECH, INC.
                                               (A Development Stage Company)
                                           CONSOLIDATED STATEMENTS OF OPERATIONS


                                                                                                                  Period from
                                         Three Months       Three Months       Nine Months       Nine Months      June 15,1998
                                            Ended              Ended              Ended             Ended        (Inception) to
                                         September 30,     September 30,      September 30,     September 30,     September 30,
                                             2003               2002              2003              2002              2003
                                          (unaudited)        (unaudited)       (unaudited)       (unaudited)       (unaudited)
                                        --------------     --------------    --------------    --------------    --------------
<S>                                 <C>                   <C>               <C>
REVENUES                                $          -        $        -        $    37,150       $         -        $   37,150

COST OF GOODS SOLD                                 -                 -            (17,500)                -           (17,500)
                                        --------------     --------------    --------------    --------------    --------------
 GROSS PROFIT                                      -                 -            (19,650)                -            19,650
                                        --------------     --------------    --------------    --------------    --------------

EXPENSES

     Consulting fees - related parties        15,750            37,000             89,084            73,000           883,539
     Other consulting fees                    25,926            53,685             75,581           264,858         1,121,019
     Financing costs                          42,000                 -             42,000                 -           261,642
     Rent                                     19,693             8,109             60,376            20,177           143,235
     General and administrative               68,886            33,416            138,822            87,401           644,242
     Depreciation                                636               472              2,000             1,377             8,884
     Professional fees                        91,671            47,777            229,474            90,826           786,355
     Research and development                    500             2,505             59,873            20,755           286,816
     Wages, salaries, and payroll taxes       15,307                 -             26,622                 -           158,501
                                        --------------     --------------    --------------    --------------    --------------
          TOTAL EXPENSES                     280,369           182,964            723,832           558,394         4,294,233
                                        --------------     --------------    --------------    --------------    --------------

LOSS FROM OPERATIONS                        (280,369)         (182,963)          (683,745)         (558,394)       (4,274,583)

OTHER INCOME (EXPENSE)
     Gain on sale of assets                        -                 -                577                 -               577
     Interest expense                        (51,014)          (41,132)          (134,350)         (122,018)         (360,306)
                                        --------------     --------------    --------------    --------------    --------------
           TOTAL OTHER INCOME (EXPENSE)      (51,014)          (41,132)          (133,773)         (122,018)         (359,729)
                                        --------------     --------------    --------------    --------------    --------------

LOSS BEFORE PROVISION FOR INCOME TAXES      (331,383)         (224,095)          (837,955)         (680,412)       (4,634,312)

PROVISION FOR INCOME TAXES                         -                 -                  -                 -                 -
                                        --------------     --------------    --------------    --------------    --------------

NET LOSS                                $   (331,383)       $ (224,095)       $  (837,955)         (680,412)       (4,634,312)
                                        ==============     ==============    ==============    ==============    ==============

 BASIC AND DILUTED NET LOSS
  PER COMMON SHARE                      $      (0.01)       $    (0.01)       $     (0.03)      $     (0.03)
                                        ==============     ==============    ==============    ==============

 WEIGHTED AVERAGE NUMBER
  STOCK SHARES OUTSTANDING                31,739,880        28,280,057         31,269,306        26,546,986
                                        ==============     ==============    ==============    ==============





        The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                       5

</table>
<PAGE>
<TABLE>
<CAPTION>
                                                   ENVIROKARE TECH, INC.
                                              (A Development Stage Company)
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                Period from
                                                                     Nine Months          Nine Months           June 15,1998
                                                                        Ended                Ended             (Inception) to
                                                                    September 30,         September 30,            June 30,
                                                                         2003                 2002                   2003
                                                                     (unaudited)           (unaudited)           (unaudited)
                                                                  ------------------    ------------------    ------------------
<S>                                                             <C>                     <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss                                                    $       (837,955)      $      (680,412)      $    (4,634,312)
      Adjustments to reconcile net loss
        to net cash used by operating activities:
      Depreciation                                                           2,000                 1,377                 8,884
      Intangible asset expensed                                                  -                 9,520                 9,520
      Impairment of molds                                                        -                     -                27,000
      Stock options issued for consulting fees                                   -                12,173               889,173
      Stock issued for consulting fees                                           -               112,000               112,000
      Warrants issued for financing expense                                 42,000                     -               261,642
      Changes in operating assets and liabilities:
        Customer deposit                                                         -                     -                61,215
        Prepaid expenses                                                    (6,537)                    -                (6,537)
        Inventory                                                          (42,200)                    -               (42,200)
        Accounts payable                                                   223,557               (62,533)              337,702
        Accrued interest payable                                           129,071               119,585               338,210
                                                                  ------------------    ------------------    ------------------
      Net cash used by operating activities                               (490,064)             (488,290)           (2,637,703)
                                                                  ------------------    ------------------    ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
      Deposits and retainers                                                43,538                18,836               (18,815)
      Purchase of molds                                                   (111,912)              (16,000)             (197,912)
      Payments of license agreement                                              -                     -              (525,000)
      Patent costs                                                               -                     -               (10,129)
      Purchase of equipment                                                 (4,335)                    -               (19,642)
      Sale of equipment                                                      1,275                     -                 1,275
                                                                  ------------------    ------------------    ------------------
      Net cash used by investing activities                                (71,434)                2,836             (770,223)
                                                                  ------------------    ------------------    ------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from sale of preferred stock                                      -                     -               250,000
      Proceeds from sale of common stock                                   278,000               420,000             1,837,799
      Repurchase of common stock                                                 -                     -                (7,500)
      Proceeds from issuance of notes payable to related
        parties                                                            290,000                     -             1,343,635
                                                                  ------------------    ------------------    ------------------
      Net cash provided by financing activities                            568,000               420,000             3,423,934
                                                                  ------------------    ------------------    ------------------
Increase (decrease) in cash                                                  6,502               (65,454)               16,008

Cash, beginning of period                                                    9,506               118,927                     -
                                                                  ------------------    ------------------    ------------------

Cash, end of period                                               $         16,008       $        53,473       $        16,008
                                                                  ==================    ==================    ==================
SUPPLEMENTAL CASH FLOW INFORMATION:
      Interest paid                                               $          1,782       $         2,432       $        16,771
                                                                  ==================    ==================    ==================
      Income taxes paid                                           $              -       $             -       $             -
                                                                  ==================    ==================    ==================


NON-CASH TRANSACTIONS:
      Common stock issued for acquisition of subsidiary           $              -       $             -       $     1,925,000
      Note issued for purchase of property, equipment,
        and operating expenses                                    $              -       $             -       $         3,635
      Note issued for pending patent to related party             $              -       $             -       $        33,330
      Note issued for deposit for stock                           $              -       $             -       $       100,000
      Warrants issued for financing activities                    $              -       $             -       $       219,642
      Stock options issued for consulting fees                    $              -       $        12,173       $       889,173
      Common stock issued for consulting fees                     $              -       $       112,000       $       112,000
      Stockholder's contribution for equipment                    $              -       $             -       $         1,847




            The accompanying condensed notes are an integral part of these consolidated financial statements.

                                                            6
</table>
<PAGE>
                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Envirokare  Tech,  Inc.   (hereinafter,   "the  Company"  or  "Envirokare")  was
incorporated  in June 1998  under the laws of the State of Nevada.  In  December
1998, the Company  acquired assets of a business  engaged in developing a rubber
mold technology and patent rights  potentially  applicable to future development
of a pallet made of recycled  materials.  The Company  believes the  early-stage
rubber mold technology to be of marginal commercial value.

During 2001, the Company acquired, via license agreement,  extensive rights to a
proprietary  thermoplastic processing technology,  the Thermoplastic Flowforming
process  (variously  referred to herein as "TPF Process",  the "Process" or "TPF
technology").  The licensing  agreement provides the Company with the ability to
utilize the TPF technology to design, develop, manufacture,  market, license and
sublicense  a wide range of large  structural  parts,  including  the  Company's
proprietary  pallet.  The  pallet  is  now  composed  of  long-fiber  reinforced
thermoplastic  composite  and  will  be  manufactured  using  the  acquired  TPF
technology.

The Company's current operating  strategy is based on developing  products to be
manufactured  by the TPF Process,  as well as marketing  the TPF  technology  to
potential sublicensees of the Company. The Company maintains offices in Orlando,
Florida. The Company has elected a fiscal year-end of December 31.

The  Company  includes  the assets and  investment  in  Electroship  Acquisition
Corporation  and  Envirokare   Composite   Corp.,   wholly-owned   non-operating
subsidiaries, in these financial statements.

The Company is in the  development  stage,  as of September 30, 2003 and has not
realized any significant revenues from planned operations.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation
--------------------

The  accompanying   interim  condensed  financial  statements  are  prepared  in
accordance  with rules set forth in Regulation SB of the Securities and Exchange
Commission.  As said, these  statements do not include all disclosures  required
under generally  accepted  principles and should be read in conjunction with the
audited  financial  statements  for the year ended  December  31,  2002.  In the
opinion  of  management,   all  required   adjustments,   consisting  of  normal
reoccurring accruals, have been made to the financial statements.


Going Concern
-------------

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern.

As shown in the accompanying  financial statements,  the Company has incurred an
accumulated deficit of $4,634,313, which includes a net loss of $837,954 for the
nine months ended  September  30, 2003,  and has a working  capital  deficit and
limited  revenues.  The  Company,  being  a  development  stage  enterprise,  is
currently marketing the TPF technology which will, if successful, mitigate these
factors which raise substantial doubt about the Company's ability to continue as
a going concern.  Management plans to fund operations from sales of its debt and
equity in the near-term and from product sales,  product development  agreements
and proceeds realized from licensing the TPF technology on an ongoing basis. The
Company has  historically  raised equity capital  through the sale of its common
and preferred  stock.  The Company has also raised debt capital  through private
placement  offerings.  Management  has  proceeded  as  planned  in  the  ongoing
development of numerous  products,  including a proprietary  pallet  composed of
long-fiber reinforced thermoplastic composite.  Management is also marketing the
TPF  technology  to various  potential  clients with the intent of  establishing
product  development  agreements,  with the agreements to include provisions for
manufacturing  and  marketing   successfully  developed  products.  The  Company
received a deposit  for product  development  during the second half of 2002 and
management  anticipates that the Company will realize  licensing fee revenues in
the near  future.  The  financial  statements  do not  include  any  adjustments
relating to the  recoverability  and  classification  of recorded assets, or the
amounts and  classification  of liabilities that might be necessary in the event
the Company cannot continue in its present form.


                                        7
<PAGE>
                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Recent Accounting Pronouncements
--------------------------------

In May 2003,  the  Financial  Accounting  Standards  Board  issued  Statement of
Financial  Accounting  Standards  No. 150,  "Accounting  for  Certain  Financial
Instruments with  Characteristics  of Both Liabilities and Equity"  (hereinafter
"SFAS  No.  150").  SFAS No.  150  establishes  standards  for  classifying  and
measuring certain financial instruments with characteristics of both liabilities
and equity and requires that those  instruments  be classified as liabilities in
statements of financial  position.  Previously,  many of those  instruments were
classified  as  equity.  SFAS No. 150 is  effective  for  financial  instruments
entered  into or modified  after May 31, 2003 and  otherwise is effective at the
beginning of the first interim period beginning after June 15, 2003. The Company
has not yet determined the impact of the adoption of this statement.

In April 2003,  the Financial  Accounting  Standards  Board issued  Statement of
Financial   Accounting  Standards  No.  149,  "Amendment  of  Statement  133  on
Derivative  Instruments and Hedging  Activities"  (hereinafter  "SFAS No. 149").
SFAS No. 149 amends and clarifies the  accounting  for  derivative  instruments,
including certain derivative  instruments  embedded in other contracts,  and for
hedging  activities under SFAS No. 133,  "Accounting for Derivative  Instruments
and Hedging Activities".  This statement is effective for contracts entered into
or modified after June 30, 2003 and for hedging  relationships  designated after
June 30,  2003.  The adoption of SFAS No. 149 is not expected to have a material
impact on the financial position or results of operations of the Company.

In  January  2003,  the  Financial   Accounting   Standards  Board  issued  FASB
Interpretation  No.  46,   "Consolidation  of  Variable  Interest  Entities,  an
Interpretation  of ARB No. 51"  (hereinafter  "FIN 46"). FIN 46 requires certain
variable interest entities to be consolidated by the primary  beneficiary of the
entity if the equity investors in the entity do not have the  characteristics of
a controlling  financial  interest or do not have sufficient  equity at risk for
the entity to finance its activities without additional  subordinated  financial
support from other  parties.  FIN 46 is effective for all new variable  interest
entities  created or acquired  after January 31, 2003.  The provisions of FIN 46
must be applied for the first interim or annual period  beginning after June 15,
2003.  The Company does not have any entities  that  require  disclosure  or new
consolidation as a result of adopting the provisions of FIN 46.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation - Transition  and  Disclosure,"  ("SFAS No. 148").  SFAS 148 amends
SFAS No. 123, "Accounting for Stock-Based  Compensation," to provide alternative
methods of transition for an entity that  voluntarily  changes to the fair value
based method of accounting for stock-based employee  compensation.  In addition,
it also  amends  the  disclosure  provisions  of SFAS 123 to  require  prominent
disclosure  about the  effects on  reported  results of an  entity's  accounting
policy  decisions  with  respect  to  stock-based  employee  compensation.   The
provisions of the statement  are effective for financial  statements  for fiscal
years ending after December 15, 2002. Prior to the issuance of SFAS No. 148, the
Company  adopted  the fair value  based  method of  accounting  for  stock-based
employee  compensation.  Thus,  the Company's  financial  reporting  will not be
significantly effected by SFAS 148.

Revenue Recognition
-------------------

The Company recognizes revenue from product sales upon shipment to the customer.


NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are stated at cost.  Depreciation  is provided  using the
straight line method over the estimated useful lives of the assets,  which range
from five to seven years.  Molds will be depreciated over their estimated useful
lives once placed in service.


NOTE 4 - NOTES PAYABLE - RELATED PARTIES

During the  quarter the  company  entered  into a  Promissory  Note  between the
Company and Leo Kapakos and Betty Kapakos,  in the principal amount of $100,000.
The note bears an interest  rate of 15% per annum with  principal  and  interest
payment  payable in 36 equal monthly  installments  of $3,466.53,  53 commencing
September 1, 2003.  Three  common stock  warrants are attached to each dollar of
debt,  with an  exercise  price of $0.20  pershare.  These  warrants  are  fully
exercisable for up to three years from the dates of issuance. See Note 6.

The Company is  renegotiating  the $1,025,000 of  outstanding  notes payable and
accrued  interest which will be extended for at least two years at similar rates
and terms. The new agreement will be finalized during November 2003.

Interest of $2,875 was accrued and expensed  during the quarter ended  September
30, 2003.


                                        8
<PAGE>
                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 5 - COMMON STOCK

During the quarter ended September 30, 2003, the Company  received an additional
$80,000 from the private sale of 400,000 shares of its common stock at $0.20 per
share.  In  addition,   these  purchasers  received  warrants  to  purchase  one
additional share of common stock for each share purchased,  exercisable at $0.40
per share for a period of one year.

In January  2003,  existing  warrant  holders  were offered a reduction in their
respective  warrant exercise prices to $0.15 per share if exercised on or before
February 14, 2003. This offer resulted in the Company  raising  $198,000 in cash
and  issuing  1,320,000  shares  of  common  stock.   Participants  were  issued
replacement warrants, exercisable over a two year period, for the same number of
shares  of the  Company's  common  stock as issued on  exercise  of the  amended
warrants.  Exercise  prices  for the new  warrants  are  $0.75  per share (as to
warrants  issued in a 2001 equity private  placement) and $0.65 per share (as to
warrants issued in a 2002 equity private placement).

For subsequent issuances of common stock, see Note 8.


NOTE 6 - STOCK OPTIONS AND WARRANTS

Accounting for Stock Options and Warrants  Granted to Employees and Nonemployees
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" (hereinafter "SFAS No. 123"), defines a fair value-based method of
accounting  for stock  options  and other  equity  instruments.  The Company has
adopted this method,  which measures  compensation  costs based on the estimated
fair value of the award and recognizes that cost over the service period.

In  accordance  with SFAS No. 123, the fair value of stock  options and warrants
granted are estimated  using the  Black-Scholes  Option Price  Calculation.  The
following  assumptions  were made to value the stock  options and  warrants  for
2003:  risk-free  interest rate of 4%,  volatility  ranging from 89% to 91%, and
terms of one to three years.

Warrants
--------

During the quarter ended September 30, 2003, the Company  received an additional
$50,000 from the private sale of 250,000 shares of its common stock at $0.20 per
share.  In  addition,   these  purchasers  received  warrants  to  purchase  one
additional share of common stock for each share purchased,  exercisable at $0.40
per share for a period of one year.  The warrants were valued at $9,055.

Also a Warrant  Agreement  between the Company and Leo Kapakos and Betty Kapakos
dated July 22,  2003,  was  approved by the Board of  Directors  minutes  signed
September 21, 2003. Leo Kapakos and Betty Kapakos received  warrants to purchase
300,000 shares of common stock, exercisable at $0.20 per share, expiring on July
22, 2005. The value of the warrants issued was $0.14 pershare,  or $42,000,  and
is included in operating expense in the financial statements. See Note 4.

In February  2003,  the exercise  price of 1,320,000  warrants was adjusted from
$0.50 to $0.15. All of these warrants were subsequently exercised,  resulting in
the issuance of 1,320,000 shares of common stock for $198,000. In addition,  the
Company issued 1,320,000  warrants to these investors,  of which 600,000 have an
exercise  price of $0.65,  and 720,000  have an exercise  price of $0.75.  These
warrants expire on February 14, 2005.



                                       9

<PAGE>
                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 7 - COMMITMENTS AND CONTINGENCIES

Merger Agreement with Thermoplastic Composite Designs, Inc.
-----------------------------------------------------------

The Company and  Thermoplastic  Composite  Designs,  Inc. ("TCD") entered into a
merger  agreement  dated March 30, 2001 and amended  September  28, 2003,  which
provides,  as  amended,  that  TCD will  merge  with  Envirokare's  wholly-owned
subsidiary,   Envirokare  Composite  Corp.,  upon  certain  specific  terms  and
conditions.  This  merger,  if  consummated,  will  require the Company to issue
3,000,000 shares of common stock in exchange for all of the outstanding stock of
TCD, if the Company's common stock trades in a nationally  recognized securities
market,  such as the NYSE,  NASDAQ (or OTCBB), or AMEX at a minimum five dollars
($5.00) to the extent that this shall occur prior to March 1, 2005. In the event
that the shares do not attain that price prior to that date,  the Company has to
option to close this merger by giving  notice within 10 days after March 1, 2005
and close  upon  payment  of  $15,000,000.  The  purchase  price  shall  include
3,000,000  shares of the  Company's  common  stock plus stock  and/or  cash,  if
necessary,  to equal the purchase price, at the Company's option. Any payment of
cash in  connection  with  the  transaction  purchase  price  shall  not  exceed
$7,500,000.  The  Company has the sole  authority  to  determine  the amounts of
additional stock or cash that would be paid.

Agreement with Schaefer Systems International, Inc.
---------------------------------------------------

On March 28, 2003, the Company  entered into a product  development and purchase
agreement  with  Schaefer  Systems  International,   Inc.,  (hereinafter  "SSI")
replacing  a earlier  agreement  dated  August 6, 2002.  Under the terms of this
agreement and pursuant to performance and dimensional  criteria provided by SSI,
the Company  will design and  develop and produce a quantity of  prototypes  for
field testing,  field trials and related approvals.  Payments to the Company for
successful  completion of product development will aggregate  $185,500,  with an
additional  $300,000  to be payable  if SSI  elects to  develop  an  additional,
similar product with different  dimensions.  The initial term of the contract is
26 weeks.  A payment of $61,215  was made by SSI to the  Company (at the time of
the August 6, 2002  agreement) to facilitate the  development of the proprietary
product.  The balance of the development fee is payable:  47% upon completion of
first parts off of the product and verification of performance and 20% within 30
days after development  completion.  SSI continued its right to order additional
development  for an additional  payment of $300,000 and 20% within 30 days after
development completion.  SSI continued its right to order additional development
for an additional payment of $300,000. This agreement provides for 26 weeks from
the effective  date within which to complete  successful  development or for the
initial payment to be returned.

The initial payment, in the amount of $61,215, was made by SSI to the Company to
facilitate  development of the part. The Company currently  recognizes the value
of the  initial  payment  made by SSI to the  Company as a deposit  for  product
development.

The  Company  has  delivered  part of the first run of  development  parts.  The
initial period of the development contract has expired.

Consulting Agreement
--------------------

See subsequent events, Note 8.

                                       10
<PAGE>
                              ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 7 - COMMITMENTS AND CONTINGENCIES (continued)

Lease Agreements
---------------

The  Company  entered  into a lease for  office  space in  Orlando,  Florida  on
September  16,  2002 for a period of 36 months.  Lease  payments  are  currently
$2,595 per month,  with additional  charges for common area. A security  deposit
was  paid in the  amount  of  $2,600.  Total  payments  for the  quarters  ended
September 30, 2003 and 2002 were $8,515 and $2,595, respectively.

The Company  entered  into a lease for office  space in Boca  Raton,  Florida on
February 7, 2001 for sixty  months.  Lease  payments  are  currently  $3,023 per
month,  with  additional  charges for common area of $1,472.  This amount totals
$4,495.  A security  deposit  and last  month's  rent were paid in the amount of
$8,412.  A portion of this office space was being  subleased  with the sublessee
reimbursing the Company  $3,000.  Total payments for quarter ended September 30,
2003 and 2002 were $13,399 and $0, respectively.

Litigation
----------

The  Company is a named  defendant  in an action  filed by Mr. Real Morel in May
2000 in the Supreme Court of British Columbia, Canada. In this action, Mr. Morel
alleges non-payment by the Company of amounts due pursuant to the aforementioned
demand promissory notes.  After consultation with British Columbia legal counsel
and a review of the  circumstances  surrounding  the issuance of the notes,  the
Company  has  resolved  to dispute  this  liability.  Management  of the Company
believes  that the  outcome  will  not have a  material  adverse  effect  on the
financial position of the Company.


NOTE 8 - SUBSEQUENT EVENT

Consulting and Employment Agreements
------------------------------------

On October 1, 2003,  the Company  entered into a three year  Agreement  with Dr.
John W. Verbicky Jr. for his services as President and Chief Executive  Officer.
The Company  agreed to compensate  Dr.  Verbicky  $140,000 for the first year of
which $70,000 will be deferred  until the end of the contract;  $175,000 for the
second year of which $85,000 will be deferred  until the end of the contract and
$200,000  (or industry  standard  whichever is higher) for the third year of the
contract.  The Company  issued to Dr.  Verbicky  warrants to purchase  2,000,000
shares  of the  Company's  common  stock  at a price of $0.23  per  share  until
September  24, 2013, a portion of which are subject to  forfeiture  in the event
that Dr. Verbicky leaves the Company prior to the expiration of his contract.

On October 1, 2003,  the Company  entered into a three year  Agreement  with Mr.
George Kazantzis for his services as Chief Operating Officer. The Company agreed
to compensate  Mr.  Kazantzis  $110,000 for the first year of service,  of which
$50,000 will be deferred until the end of the contract;  $140,000 for the second
year of which $60,000 will be deferred until the end of the contract  and160,000
(or industry  standard  whichever is higher) for the third year of the contract.
The Company issued to Mr. Kazantzis warrants to purchase 1,200,000 shares of the
Company's common stock at a price of $0.23 per share until September 24, 2013, a
portion of which are  subject  to  forfeiture  in the event  that Mr.  Kazantzis
leaves the Company prior to the expiration of his contract.

On October 1, 2003,  the Company  entered into a three year  Agreement with Mr.
Erwin Pruefer for his services as Director of Operations.  The Company agreed to
compensate  Mr.  Pruefer  $96,000  for the first year of which  $36,000  will be
deferred  until the end of the  contract;  $100,000 for the second year of which
$30,000 will be deferred  until the end of the contract and 120,000 (or industry
standard  whichever is higher) for the third year of the  contract.  The Company
issued to Mr.  Pruefer  warrants to  purchase  500,000  shares of the  Company's
common stock at a price of $0.23 per share until  September  24, 2013, a portion
of which are  subject to  forfeiture  in the event that Mr.  Pruefer  leaves the
Company prior to the expiration of his contract.


                                       11
<PAGE>
                             ENVIROKARE TECH, INC.
                          (A Development Stage Company)
            Condensed Notes to the Consolidated Financial Statements
                               September 30, 2003


NOTE 7 - SUBSEQUENT EVENT (continued)


Election and Resignation of Board of Directors
----------------------------------------------

On October 10, 2003, Dr. Nicholas Pappas was elected  Executive  Chairman of the
Board of Directors of the Company.  Dr. Pappas was issued as of October 1, 2003,
warrants to purchase 1,200,000 shares of the Company's common stock at $0.23 per
share until October 1, 2013.  Half of the warrants are  exercisable  immediately
and the other half  exercisable  after one year. A portion of these warrants are
subject to forfeiture in the event that Dr. Pappas does not stand for reelection
during the first two years after the date of issue.

On October  10,  2003,  Dr. E. Gary Cook was elected as a Member of the Board of
Directors of the Company. Dr. Cook was issued as of October 1, 2003, warrants to
purchase  400,000 shares of the Company's  common stock at $0.23 per share until
October 1, 2013. Half of the warrants are exercisable  immediately and the other
half  exercisable  after one year.  A portion of these  warrants  are subject to
forfeiture in the event that Dr. Cook does not stand for  reelection  during the
first two years after the date of issue.

On October  10,  2003,  Mr. Leo Kapakos  resigned  from the  Company's  Board of
Directors.  He was issued as of October 1, 2003  warrants  to  purchase  200,000
shares of the Company's common stock at a price of $0.23 per share until October
1, 2013.

As of October 1, 2003,  Jonathan  Edelstein,  a Member of the Company's Board of
Directors has been issued  warrants to purchase  400,000 shares of the Company's
common stock at a price of $0.23 per share until October 1, 2013.

Subsequent  to the  end of the  quarter,  the  company  received  an  additional
$125,000  from the private  sale of 625,000  shares of its common stock at $0.20
per share.  In  addition,  these  purchasers  received  warrants to purchase one
additional  share of common stock for each one  purchased,  exercisable at $0.40
per share for a period of one year.








                                       12
<PAGE>
ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Envirokare Tech, Inc. is in the business of  commercializing a unique patentable
and economically attractive process for producing large parts from thermoplastic
polymer plus reinforcing fiber such as glass, kevlar,  carbon, etc. The products
of this  process are unique in that they  contain long length fiber which impart
high modulus  typical of high  performance  composites,  have complex shapes and
multifunctionality and are formed in low cost, low-pressure molds.

Historically,  advanced composite  materials were utilized almost exclusively by
the military and aerospace  industries where such usage was normally  restricted
to  the  manufacture  of  small  parts  due  to  the  inordinate  cost  of  hand
application,  i.e.,  the  process  of  manually  applying  layers  of  composite
materials  to a mold or  shape.  Management  believes  that the  Thermo  Plastic
Flowforming (TPF) Process provides a cost-effective  alternative for the in-line
production of larger, long-fiber reinforced plastic parts at very low processing
costs.  The  Process  has  key  advantages  over  many  manufacturing  processes
currently in use such as compression  molding,  injection molding and rotational
molding,  including  significantly,  cost savings  realized in the reduced labor
required to create larger parts made using the TPF Process. The cost required to
assemble  multiple smaller  components to generate a complete larger part, which
often  occurs in current  production  environments,  is higher than with the TPF
Process.  Material  costs  will  typically  also be lower  because of its use of
recycled  material,  reuse of its own production scrap and in-line  compounding,
which is the process of mixing raw material  components as an actual part of the
production process.

The TPF  Process  has  application  in a broad  range of  industries  including:
agriculture,  automotive,  material handling,  transportation,  marine, medical,
waste  management  and  aerospace.  TPF  composite  products  are an  advantaged
replacement for many wood, aluminum,  steel, other metal alloys, concrete, other
plastic and  fiberglass  products,  by providing  products  that have  corrosion
resistance,  are  lighter  and  cost  less to  manufacture.  As a  thermoplastic
process,  TPF has an  additional  advantage  in that it does not  emit  volatile
organic contaminants (VOCs).

The Company has acquired this technology  through License and Merger  Agreements
with Thermo  Plastic  Composite  Designs,  Inc. On March 30,  2001,  and amended
September 29, 2003, the Company, through its wholly-owned subsidiary, Envirokare
Composite Corp. ("ECC"), entered into a licensing agreement with TCD that allows
the Company to commercially  exploit the TPF Process. The agreement provides the
Company  with the  ability to utilize  the TPF  technology  to design,  develop,
manufacture,  market,  license  and  sublicense  a wide  range  of  applications
including  the  Company's  proprietary  Pallet,  manufactured  through the joint
efforts  of the  Company  and TCD,  or the  Company's  sublicensees,  for use in
agriculture,  aerospace,  automotive,  construction,  marine, medical, military,
transportation and waste management. The Company paid TCD a one time license fee
of $525,000  under the  agreement.  To complete  this  acquisition,  the Company
entered into a merger  agreement  with TCD,  which  provides that TCD will merge
with ECC if  Envirokare's  shares  achieve an average of the  closing  bid asked
prices at or above  prices at or above  five  dollars  per share at any point in
time  during  the  thirty-month   period  following  the  agreement  date,  with
Envirokare paying merger  consideration to TCD in the amount of 3,000,000 shares
of its common stock.  In the event that  Envirokare's  shares have not traded at
such  specified  level of five dollars per share by the end of the  thirty-month
period,  Envirokare  has the  option  to  effect  the  merger of TCD with ECC by
Envirokare's paying to TCD's shareholders a $15,000,000 consideration, either in
shares of  Envirokare  or in a  combination  of cash and  shares,  with the cash
payment to be no greater than  $7,500,000.  The date of such closing and payment
would be no later than March 20, 2005.



                                       13
<PAGE>
Product Research, Development and Testing:
-----------------------------------------

General  Product  Technology  Testing:  During the second  quarter of 2002,  the
Company engaged the Metis Design  Corporation,  Inc. ("Metis Design"),  formerly
Horizon  Defense and Aerospace  Solutions,  Inc., to conduct a review of the TPF
technology.  Metis  Design,  based in Cambridge,  Massachusetts,  is an advanced
technology firm  specializing in composites  consulting,  damage  monitoring and
structural concept design and analysis.

In September 2002,  Metis Design  presented the Company's  management with final
findings regarding the TPF technology.  In its report,  Metis Design noted that,
as the utilization of advanced  thermoplastic  composite  materials has extended
into market  segments such as military and aerospace,  commercial  manufacturers
are  increasingly  demanding  lower cost,  quicker and more flexible  reinforced
thermoplastic processing techniques. Metis Design found that the TPF Process has
significant  potential to address this need. In addition,  Metis Design reported
that the TPF Process could represent a solution to a  long-standing  need in the
long-fiber  reinforced composite  manufacturing  process the TPF Process enables
manufacturers to mass-produce at high rates and labor  efficiencies  compared to
many current production techniques,  while retaining accuracy and the ability to
utilize  low  molding  pressures.  The report  also  noted that the TPF  Process
provides economic advantages over other thermoplastic  composite molding methods
through reduced labor, material, tooling and machine costs.

Metis  conducted  narrow  coupon  tensile  tests on composite  material  samples
produced  from the TPF  Process.  These  tests are the  standard  procedure  for
determining  certain  mechanical  properties  of a  material.  The test  results
demonstrated that the material properties exhibited in the product, as formed by
the  TPF  Process,   are  comparable  to  those  from  products  formed  through
traditional  processes,  and  are  similar  to  those  properties  published  by
commercially available materials.

Product Development - E Pallet: Since inception, the Company has been engaged in
the development of the Pallet. In December 1998, acquired equipment, early-stage
rubber  mold  technology  and patent  rights to the  development  of rubber mold
technology  for  creating a pallet  made of  recycled  materials.  In 1999,  the
Company and TCD entered into a  product/technology  contract  for the  continued
development  of the pallet.  TCD  undertook to assist the Company in  optimizing
earlier  versions of the Pallet design.  The contract  required TCD to deliver a
pallet that would meet design specifications including specified size and weight
requirements  and a customized  composition  matrix.  The contract also provided
that TCD would supply an  engineered  mold for the  Company's  first  production
facility.  The  Company's  payments for the  development  of a first  generation
Pallet mold totaled $50,800 in 1999 and $83,000 in 2000.

Commencing in May 2000,  additional  Pallet testing and evaluation was conducted
by  the  Pallet  and  Container  Research  Laboratory  of  Virginia  Polytechnic
Institute and State University, located in Blacksburg, Virginia. This laboratory
is  recognized  for its work in the area of testing  and  analysis  of  products
designed for use in the materials handling  industry.  Based on the initial test
results,  the  Company  and its  product  design  contractor,  TCD,  made design
adjustments to the Pallet.  Further  Pallet testing and evaluation  through 2001
resulted in further design  adjustments.  As a result of the design  adjustments
and  modifications,  the first generation mold was deemed to be of no commercial
value.  The Company  built a second  generation  mold during 2001,  at a cost of
$43,000,  incorporating  design  modifications  based on  technical  information
derived from tests of the previous  mold.  Pallets  produced from this mold were
tested and evaluated at the Pallet and Container Research  Laboratory during the
second  quarter of 2002.  The study of the second  mold  product  evaluated  the
strength,  stiffness and  durability of the Pallet as a general  purpose  pallet
with a 2,800 pound weight capacity set as the standard.

The study findings included the following:

     o    The Pallet could safely support a 2,800 pound,  uniformly  distributed
          load in warehouse storage racks as well as on conveyors;

     o    The Pallet was found to be highly  resistant to damage caused by rough
          handling,  based on the drop test protocol carried out, which involved
          dropping  empty  Pallets from various  heights  after the Pallets were
          chilled to a temperature of -13 degrees Fahrenheit; and

     o    Because the Pallet's  performance  was found to  significantly  exceed
          requirements  for a  2,800-pound  uniform  load  standard,  the  study
          recommended  that the Company  consider  reducing the  Pallet's  glass
          loading (i.e. the percentage of glass fiber used in the composite), or
          refining its design, to further reduce Pallet weight and cost.

                                       14
<PAGE>
Based on the results of testing  conducted  on the second  generation  E Pallet,
during the second quarter of 2002, the Company  engaged Metis Design to optimize
this Pallet  redesign.  The Pallet  design  modifications,  as proposed by Metis
Design, allow for a significant weight reduction of the Pallet making the Pallet
more  cost-effective  and easier to handle,  while  structural  features are not
anticipated  to be  materially  affected.  The Company is presently  negotiating
product  development  agreements with  prospective  partners to produce the next
generation  Pallet  prototypes  which  the  Company  believes  will  lead  to  a
comprehensive production agreement for Pallet manufacture.

Once  redesign  work is  completed  by Metis  Design,  the Company  will conduct
further tests on the Pallet,  with testing designed to provide information as to
the longevity of the Pallet, as compared to pallets made from non-TPF processes,
including  pallets made from other  materials.  Information  provided  from this
additional  engineering  analysis  will  further the  development  of  marketing
strategies  for the  Company.  There can be no  assurance  that this  additional
engineering will not delay the Company's plans for the  commercialization of the
Pallet.  The Company is presently  negotiating with prospective  clients who may
complete  development of the Pallet in cooperation  with the Company and make it
available for commercialization. The Company anticipates that the reengineered E
Pallet will be available for sale sometime in early 2004.

In addition to the second-generation Pallet discussed above, the Company is also
evaluating  pallets and other material handling devices  incorporating  wireless
tracking  capabilities,  based on  technology  acquired  in the  Company's  2000
acquisition of Electroship  (N.Y.) Inc. The Company believes that initial Pallet
designs that incorporate wireless tracking capabilities will prove marketable in
multiple  markets.  Company plans for  additional  development  of this wireless
tracking technology are scheduled for late 2003.

Product  Development - New Age  Shelters:  The Company and New Age Shelters Ltd.
("New Age") entered into a non-binding letter of agreement, dated March 20, 2003
replacing an earlier  agreement dated October 1, 2002,  expressing the intent of
the  parties  to  combine  their  businesses  through  a merger  of New Age into
EnviroDome LLC ("Envirodome"), a wholly-owned subsidiary of the Company. New Age
is a building  systems  manufacturing  company.  This  transaction was cancelled
after the end of the reported  period,  an action the Company  believes to be in
the best interests of both the Company and New Age Shelters Ltd.

Product  Development - Schaefer Systems  International,  Inc. On March 28, 2003,
the Company entered into a product  development and purchase  agreement with SSI
replacing  a earlier  agreement  dated  August 6, 2002.  Under the terms of this
agreement and pursuant to performance and dimensional  criteria provided by SSI,
the Company  will design and  develop and produce a quantity of  prototypes  for
field testing,  field trials and related approvals.  Payments to the Company for
successful  completion of product development will aggregate  $185,500,  with an
additional  $300,000  to be payable  if SSI  elects to  develop  an  additional,
similar product with different  dimensions.  The initial term of the contract is
26 weeks.  A payment of $61,215  was made by SSI to the  Company (at the time of
the August 6, 2002  agreement) to facilitate the  development of the proprietary
product.  The balance of the development fee is payable:  47% upon completion of
first parts off of the product and verification of performance and 20% within 30
days after Development  Completion.  SSI continued its right to order additional
development for an additional payment of $300,000.

Product Marketing and Market Exploitation:
-----------------------------------------

The Company's plan for the marketing and exploitation of its  technologies  over
the next twelve months includes:

1.   direct  development and  manufacturing  of products for materials  handling
     (pallets).
2.   3rd party  licensing  of TPF  Technology  for  specific  applications  and
     products as well as for specific geographic areas.
3.   product development for 3rd party applications and licensed manufacturing.

The Company expects to continue to market its technology  both directly  through
officers and directors and through third party marketing agreements.


                                       15
<PAGE>

The Company has entered into an preliminary agreement with a company in Thailand
for  exploitation of the Company's  technology for that country.  This agreement
provides for the manufacture  and  distribution of TPF products and includes the
rights to market,  develop  and  manufacture  applications  using the  Company's
technology  in that  country  in  exchange  for a payment  $350,000  paid at the
signing of the final agreement.  An  administrative  fee of $5,000 has been paid
into  escrow by the  licensee  but no closing  date has yet been  scheduled.  An
additional  $2,000,000  is to be paid not later  than  December  31,  2004.  The
Company is to receive ongoing royalty  payments in the amount of $0.18 per kg of
throughput  processed  by the  producers  under  these  agreements.  There is no
assurance that this transaction  will close,  that the initial fees will be paid
pursuant to this  agreement,  or if closed,  that the producers  will enter into
production generating ongoing royalties

The  Company  expects  additional  results  from a  broad  range  of  continuing
marketing and sales activities. As well, the Company expects to close its merger
with TCD during  year 2005 and with it acquire  additional  marketing  and sales
opportunities.

Expected  Purchase of Plant and Significant  Equipment
and Expected  Significant Changes in Number of Employees
--------------------------------------------------------

September  28, 2003,  the Company  Amended its Merger  Agreement  with TCD which
provides for the combination of TCD with the Company's  wholly owned  subsidiary
ECC. The Amendment provided for the extension of the closing and payment date to
March 10, 2005.  When closed,  this  transaction  will bring into the Company an
existing TPF production  facility including  equipment and leased premises.  The
size of this facility is limited and is used  primarily for product  development
and small  production  runs. The Company has continued  preliminary  development
work toward the end of creating a full scale production facility for manufacture
of Company  and third party  products,  however,  no specific  site has yet been
contracted  for.  The Company  continues  to consider  the option of assisting a
prospective  third  party  licensees  in  the  construction  of a  manufacturing
facility in  exchange  for access to such a facility  but no  decision  has been
made.  There is no assurance that funds will be available for the development of
such  a  facility  or  that a  third  party  licensee  can be  located  for  the
alternative.  During the balance of the fiscal year, the Company  expects to add
one to three  people  to its  existing  staff.  As well,  the  Company  will add
personnel  required for the  operation  of the  existing  TCD facility  upon the
completion of the merger with that company.  The schedule for any new production
facility  will  dictate  the  addition  of any  personnel  associated  with that
facility.

Liquidity
----------

The Company has budgeted expenditures of $720,000 for the 12 months ending March
31, 2004.  During the fiscal  quarter  ended June 30, 2003,  the Company  raised
$30,000 from the private  placement of the Company's  Common shares and had cash
remaining  at the end of the quarter of $23,252.  During this fiscal  year,  the
Company  received  $37,150 in  revenues  for  product  development  work with an
additional $37,150 of product  development and prototype work scheduled for this
customer during the third quarter of the fiscal year. The Company has in process
an additional  $185,000 of development  work for another  customer (see "Product
Development - Schaefer  Systems,  Inc.") and expects to receive  these  revenues
during the current fiscal year. The Company  conducts  product  development work
with the expectation  that successful  development will lead to manufacturing or
license contracts for the Company's process, although there is no assurance that
such  manufacturing  or  license  contacts  will  result  from this work or that
additional revenues will be forthcoming.


ITEM 3.  CONTROL AND PROCEDURES

Within the 90 days prior to the filing date of this Quarterly Report, the issuer
carried out an evaluation,  under the supervision and with the  participation of
our  Principal  Executive  Officer  and  Principal  Accounting  Officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as defined in Rule  13a-14(a) and Rule  15d-14(c) of the  Securities
Exchange  Act of 1934.  Based  upon that  evaluation,  the  Principal  Executive
Officer and the  Principal  Accounting  Officer  concluded  that our  disclosure
controls  and  procedures  are  effective  in timely  alerting  them to material
information relating to us (including our consolidated subsidiaries) required to
be included in this Quarterly Report.  There have been no significant changes in
our internal controls or in other factors, which could significantly affect such
internal controls, subsequent to the date we carried out our evaluation.


                                       16
<PAGE>


                           PART II -OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

     Reference  is made to the  Company's  Annual  Report on Form 10-KSB for the
year ended December 31, 2002 (the "2002 Annual Report"),  for a discussion of an
action  filed by Mr. Real Morel  against  the  Company in the  Supreme  Court of
British  Columbia,  Canada.  The  status  of this  matter  remains  the  same as
discussed in the 2002 Annual Report.


ITEM 2. CHANGES IN SECURITIES

     During the quarter,  the company  received an  additional  $80,000 from the
private  sale of  400,000  shares of its  common  stock at $0.20 per  share.  In
addition, these purchasers received warrants to purchase one additional share of
common stock for each on purchased,  exercisable at $0.40 per share for a period
of one year.

     In January 2003, existing warrant holders were offered a reduction in their
respective  warrant exercise prices to $0.15 per share if exercised on or before
February 14, 2003. This offer resulted in the Company  raising  $198,000 in cash
and  issuing  1,320,000  shares  of  common  stock.   Participants  were  issued
replacement warrants, exercisable over a two year period, for the same number of
shares  of the  Company's  common  stock as issued on  exercise  of the  amended
warrants.  Exercise  prices  for the new  warrants  are  $0.75  per share (as to
warrants  issued in a 2001 equity private  placement) and $0.65 per share (as to
warrants issued in a 2002 equity private placement).


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None


ITEM 5. OTHER INFORMATION

     None












                                       17
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)   Exhibits

Exhibit
Number    Description of Document
-------   --------------------
3.1       Company's Articles of Incorporation, as amended
            October 12, 1999................................................(1)
3.2       Company's By-laws as amended and restated December 11, 2000.......(2)
10.1      Merger Agreement  by and among the Company, Electroship
            Acquisition Corp., Electroship (N.Y.) Inc., Electroship
            Partners, John Gremmo, John A. Notarianni, Leo J. Mangan,
            Raymond Anthony Joao and Richard Reichler, dated as
            of December 1, 2000.............................................(3)
10.2      Assignment of Patent Application from Electroship Partners
            to Electroship (N.Y.) Inc. and Defined Field of Use
            License Agreement between Electroship Partners and
            Electroship (N.Y.) Inc. dated as of September 30, 2000..........(3)
10.3      License Agreement between Envirokare Composite Corp. and
            Thermoplastic Composite Designs, Inc., dated March 30, 2001.....(2)
10.4      Merger Agreement by and among  the Company, Envirokare
            Composite Corp., Thermoplastic Composite Design, Inc.,
            Dale Polk, Sr. and Dale Polk, Jr., Dated March 30, 2001.........(2)
10.5      Letter Agreement between the Company and Charles H. Stein,
            dated May 8, 2001...............................................(4)
10.6      Agreement and General Release between the Company and
            Charles H. Stein, Dated November 27, 2001.......................(5)
10.7      New Age Shelters Letter Agreement, dated October 1, 2002..........(6)
10.8      Agreement with Schaefer Systems International, Inc,
            dated March 28, 2003............................................(6)
10.9      New Age Shelters Letter Agreement, dated March 20, 2002...........(7)
10.10     Promissory Note between the Company and Leo and Betty Kapakos.....(8)
10.11     Warrant Agreement between the Company and Leo and Betty Kapakos...(8)


--------------------------
(1)  Filed as an exhibit to the  Company's  Annual Report on Form 10-KSB for the
     year ended  December 31, 1999,  filed with the Commission on April 7, 2000,
     and incorporated herein by reference.
(2)  Filed as an exhibit to the  Company's  Annual Report on Form 10-KSB for the
     year ended December 31, 2000,  filed with the Commission on April 16, 2001,
     and incorporated herein by reference.
(3)  Filed as an exhibit to the Company's Current Report on Form 8-K, filed with
     the Commission on January 3, 2001, and incorporated herein by reference.
(4)  Filed as an exhibit to the  Company's  Quarterly  Report on Form 10-QSB for
     the period  ended March 31,  2001,  filed with the  Commission  on June 15,
     2001, and incorporated herein by reference.
(5)  Filed as an exhibit to the  Company's  Annual Report on Form 10-KSB for the
     year ended December 31, 2001,  filed with the Commission on March 28, 2002,
     and incorporated herein by reference.
(6)  Filed as an exhibit to the  Company's  Annual Report on Form 10-KSB for the
     year ended December 31, 2002,  filed with the Commission on April 14, 2002,
     and incorporated herein by reference.
(7)  Filed  as  an exhibit to  the Company's Quarterly Report on Form 10-QSB for
     the quarter ended March 31, 2003, filed with the Commission on May 15, 2003
     and incorporated herein by reference.
(8)  Filed as an exhibit to the Company's Current Report on Form 8-K, filed with
     the Commission on September 26, 2003, and incorporated herein by reference.


       b)  Reports on Form 8-K


     The  Company  filed a Report  on 8-K on  August  27,  2003  concerning  the
     placement of shares into a blind trust by a major  shareholder and Chairman
     of the Board of Directors, Steve Pappas.

     On September 18, 2003, the Company filed a Report on Form 8-K the filing of
     Non-Provisional  Patent  Application  entitled  "Apparatus  and  Method for
     Facilitating  Shipping  Commerce"  claiming priority to provisional  patent
     application serial number 60/409,144.

     A Report  on Form 8-K was  filed  by the  Company  on  September  26,  2003
     disclosing the terms of a $100,000 loan from Leo Kapakos,  Director, to the
     Company







                                       18
<PAGE>
                                    SIGNATURE

In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, On November 19, 2003.

                                       ENVIROKARE TECH INC.


                                       By:  /s/  John W. Verbicky, Jr.
                                          -----------------------
                                            Name:  John W. Verbicky, Jr.
                                           Title:  President, CEO